Carlyle to Take Over BASF Coatings Unit in €7.7 Billion Deal (2)

Carlyle Inc. agreed to take control of BASF SE’s coatings business, creating a standalone company with an enterprise value of €7.7 billion ($8.9 billion).

The US private equity firm and its partner, Qatar Investment Authority, reached a binding agreement with BASF, the companies said Friday in a statement. BASF will retain a 40% stake and continue to invest in the business, after receiving €5.8 billion in proceeds from the deal.

The disposal of the coatings unit, to be called BASF Coatings, furthers Chief Executive Officer Markus Kamieth’s effort to reorient the group to counter high ...